Apple Sues OpenAI for Stealing Trade Secrets

iPhone maker accuses OpenAI of poaching employees and misusing confidential information for consumer hardware plans

July 11, 2026 at 1:02 PM
icon-facebook icon-twitter icon-whatsapp

SAN FRANCISCO: Apple has sued OpenAI in a California federal court, accusing the artificial intelligence company of stealing trade secrets as it works to develop its own consumer hardware device.

The lawsuit, filed in San Jose, marks a major escalation between the two companies, which had partnered in 2024 to integrate ChatGPT into Apple products.

Apple alleged that OpenAI carried out an aggressive campaign to recruit Apple employees and obtain confidential information linked to unreleased technologies, processes and products.

“At every level, from members of its Technical Staff to its Chief Hardware Officer, and in coordination with business partners, OpenAI has been stealing Apple’s trade secrets and confidential information,” Apple said in the complaint.

The lawsuit names OpenAI, its hardware subsidiary io Products, former Apple design chief Jony Ive’s company acquired by OpenAI in 2025, and two former Apple employees, Tang Yew Tan and Chang Liu.

Tan, now OpenAI’s chief hardware officer, spent 24 years at Apple and was previously vice president of product design for the iPhone and Apple Watch.

Apple alleged Tan used confidential project code names during OpenAI interviews and asked Apple employees to bring physical components for “show and tell” sessions.

OpenAI denied wrongdoing, saying it had no interest in other companies’ trade secrets.

Apple is seeking damages and an injunction barring OpenAI from using its confidential information.

icon-facebook icon-twitter icon-whatsapp